Substantiation
What can be measurable or proven
Deception vs Puffery
Deception is actionable.
- illegal
Puffery is not actionable
- legal
- statements can neither be proven or disproven
Deception
Lie likely to mislead.
A consumer acting reasonably.
Must be "material"
examp...
Substantiation - ANSWER-What can be measurable or proven
Deception vs Puffery - ANSWER-Deception is actionable.
- illegal
Puffery is not actionable
- legal
- statements can neither be proven or disproven
Deception - ANSWER-Lie likely to mislead.
A consumer acting reasonably.
Must be "material"
example. Duracell "lasts even longer" (cost more and did not last longer than others)
Puffery - ANSWER-Exaggeration or overstatement.
Expressed in broad, vague language.
Not An advertisers opinion of a product that is considered a legitimate expression of biased opinion.
Not misdescriptions or false representations of specific characteristics.
FTC - ANSWER-Federal Trade Commission created in 1914 to prevent unfair competition and monitor
and deter false, fraudulent, misleading, or deceptive advertising.
FTC 3 part test - ANSWER-1) There must be a representation, omission, or practice that is likely to
mislead the consumer.
2) The act or practice must be evaluated from the perspective of a reasonable consumer.
,3) The representation, omission, or practice must be material- that is, likely to affect a consumer's
choice or use of a product or service.
Material - ANSWER-Impactful to behaviors.
(attitudes and thoughts)
What will the FTC make you do if you make deceptive ads? - ANSWER--Stop/Change ads
- "cease and desist" $10,000/a day
-Publicize corrective -ads
-Pay fines
How does the FTC become aware of deceptive practices? - ANSWER-Consumers, other advertisers, or
FTC staff.
Consent Decree - ANSWER-What the FTC will ask a deceptive advertiser to sign. A document that does
not admit to deception, yet acknowledges that the advertiser will stop running the sanctioned ad.
What happens if an Advertiser doesn't sign the Decent Decree, breaks it, or continues running the ad? -
ANSWER-FTC has power to:
-issue a "CEASE AND DESIST" ORDER- $10,000 a day until the sign decree.
-Mandate for advertiser to run CORRECTIVE ADVERTISEMENTS.
-If agreement is not met with the FTC, the case can go to FEDERAL COURT- asked to pay consumers back
Rank speech in order of constitutional protection (highest to lowest) - ANSWER-1)Artistic speech
2)Political speech
3)Commercial Speech
, 4)Corporate Speech
5)Slander/Hate Speech
Are Product Placements deceptive or misleading? - ANSWER-No, it is considered artistic expression and
gets highest level of free speech protection in the U.S.
Social Marketing - ANSWER-The process of using marketing techniques to persuade consumers to adopt
the behaviors advocated by a social cause. Ex: Stopping smoking, obesity prevention, recycling.
What does a for-profit partner want to gain from teaming up with a non-profit organization? - ANSWER-
1) Associate its product with a perceived social good, boosting its appeal to a market segment that
shares that perception.
2) Increase a broader market segment's perceptions of the enterprise as socially engaged and
responsible.
3) Derive bottom line benefits from increasing market share in the targeted segment.
What is the difference between social marketing and socially responsible advertising? - ANSWER-It lies in
the message.
-Social marketing is encouraging people to do better for a cause. Ex: Telling people to recycle.
-Socially responsible marketing is selling a product that is good for a cause. Ex: Product made with 100%
recycled parts
Stakeholders recognized by companies that employ socially responsible advertising: - ANSWER--
Employees
-Stockholders
-Communities (where the product is sold)
-Consumers
In what ways can advertisers demonstrate they are socially responsible? - ANSWER-1) Social issues
linked with products. (Tom's Shoes)
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